The deep waters off West Africa have become a prime focus for major international oil companies as they resume offshore exploration activities.
Cote d’Ivoire and Namibia have emerged as the most exciting exploration zones in recent times, boasting substantial oil and gas discoveries.
Cote d’Ivoire’s Oil Production Surge
While Namibia is yet to initiate its crude oil production, Cote d’Ivoire (also known as Ivory Coast) has been a long-standing producer and is poised to triple its output by 2027, thanks to recent oil and gas finds in its territorial waters.
The country aims to increase oil production to 200,000 barrels per day (bpd) by 2027, a significant jump from its current output of roughly 60,000 bpd. President Alassane Ouattara envisions attracting $15 billion in investments to establish Cote d’Ivoire as a regional oil and gas hub.
Eni’s Success in Cote d’Ivoire
Italian oil giant Eni has been the most active player in Cote d’Ivoire, making two major discoveries since 2021. Notably, Eni commenced oil and gas production from the Baleine field in August 2023, a mere two years after its discovery and just a year and a half after the Final Investment Decision (FID).
The Baleine field is expected to reach full development by 2027, producing 150,000 bpd of oil. Additionally, Eni’s Calao discovery in March 2024, potentially holding between 1 billion and 1.5 billion barrels of oil equivalent, further bolsters Cote d’Ivoire’s oil and gas prospects.
Vaalco Energy’s Interest in Baobab Field
Cote d’Ivoire’s producing Baobab offshore field has also caught the eye of Houston-based Vaalco Energy, which acquired a stake in the field earlier this year.
The company plans to upgrade the FPSO in 2025, anticipating production growth from the 2026 drilling program and beyond. Vaalco Energy sees this acquisition as a valuable addition to its portfolio due to the field’s strong current production and reserves.
Namibia: The Next Oil Frontier
Namibia, located further south along the West African coast, is viewed as the next potential oil production powerhouse, potentially following in the footsteps of Guyana’s success. Shell, TotalEnergies, and Portugal’s Galp have all announced significant oil discoveries offshore Namibia in recent years.
Galp Energia’s Mopane field, with an estimated 10 billion barrels of oil in its first exploration phase, is a key target for the company, along with Shell and TotalEnergies.
Growing Potential in Southern Africa
TotalEnergies and QatarEnergy are expanding their exploration efforts in the Orange Basin by acquiring a nearby license in South African waters. With substantial discoveries already made by TotalEnergies and Shell, and BP-Eni’s Azule Energy also entering the region, Namibia’s oil economics appear promising, with positive net present value even at lower oil prices.
The Future of African Oil Production
Cote d’Ivoire, Namibia, and South Africa have emerged as the new focal points for offshore exploration and production for major oil companies, shaping the future of oil production in Africa.